Amazon Success Story: How it Became the eCommerce Giant

Amazon success story
Since the pandemic, online shopping has become a part of our daily life for most of us. One of the first eCommerce sites that people visit is none other than Amazon. There are many new and upcoming companies in the eCommerce marketplace, but only a few pioneer companies have established themselves as the market leader, one of them being Amazon.
The trillion-dollar company had its humble beginning in 1994 in the founder Jeff Bezos’s garage in Seattle, Washington. It is now among the first few companies that joined the 1 trillion valuation club. Just like the author Brad Stone calls the “Everything Store,” Amazon offers unlimited options for sections, custom-made services at a lower price, and good customer care. This company now has a foothold in e-commerce, digital streaming, AI, and cloud computing and has excelled in all these sectors. It also surpassed Walmart as the most valuable retailer back in 2015.
Amazon has remained the face of the ever-growing market, quickly adapting to new demands and building a productive brand. This eCommerce giant is not a household name worldwide, and it rightfully deserves to be. But how did it start? Let’s take a deep dive into how the e-commerce giant made it to the top.

Table of Contents

A Brief About Amazon

Amazon does not need any introduction, as everyone has either shopped or at least heard of the platform. In fact, it has almost become synonymous with online shopping. It is a multinational technology company that has gained a foothold in eCommerce, cloud computing, digital streaming, and AI sectors. The company also offers a wide range of services, from Amazon Game Studio, Amazon Drive (similar to Google Drive), and Amazon Web Services (a comprehensive cloud platform), all used by numerous technology representatives worldwide. Not only that, but it also offers various multiple streaming and downloadable content through Amazon Music, Amazon Prime Video, and Twitch.
It publishes books through its publishing arm, Amazon Publishing, and film and television content through Amazon Studios. Amazon also produces well-known consumer electronic products such as Kindle e-readers, Echo devices, Fire tablets, and Fire TVs. The global marketplace now considers the company to be one of the most influential economic forces in the world and for being among the biggest rule-setting brands. According to Statista, during the third quarter of 2022, Amazon generated total net sales of over 127.1 billion US dollars.

Highlights of Amazon

Founded
Founders
CEO
Revenue
Headquarters
Industry
5th July 1994
Jeff Bezos
Andy Jassy
US$ 127.1 billion in Q3 2022
Seattle, Washington
Conglomerate

Jeff Bezos's Early Life

Jeff Bezos is the mastermind behind the concept of Amazon and the force behind the company’s success. The ace entrepreneur took one of the most significant bets on the Internet and forever changed how people shop. With a net worth of US$ 109.3 billion as of January 2023, here is how he first came up with the conception of amazon:
Jeff Bezos's - the master mind behind amazon success
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    Mr. Bezos first came up with the idea when he noticed the growing market of e-commerce was over nearly 2,300% in 1994.
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    After taking a keen interest in this sector, he took the plunge and left his job at the Wall Street firm to start an e-commerce company.
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    The entrepreneur who always wanted to start a business didn't want to wake up one day and regret not starting a company with a massive growth opportunity like the Internet.
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    He then moved to Seattle and began creating a unique business plan for his eCommerce company, which he called "Cadabra Inc."
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    However, after his friends recommended changing the name, he finally settled on Amazon.com.
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    He first created a list of 20 categories but eventually narrowed it down to selling books due to their high demand and low price point.
Keep a watch out for more such success stories of multimillion-dollar companies. To get the latest updates on our upcoming infographics.

The Beginnings of Amazon

Bezos was one of the few entrepreneurs who understood the Internet’s potential in its early stages and decided to capitalize on it. They were able to build a massive online presence early on and utilize that to their advantage. Amazon first started as an online marketplace for books. Soon after Amazon.com Inc. debuted, Jeff Bezos and a handful of his employees worked late at night packing books in a small warehouse, scrambling to ship its rising orders.
The amazon marketplace has expanded to sell electronics, music, CDs and DVDs, tools, toys, software, video games, apparel, furniture, baby products, sporting goods, beauty products, clothing, and jewelry. Having become online in 1995, the company worked hard to provide customers with the timely delivery of their orders. It proliferated because of its growing customer loyalty and word-of-mouth promotion.
amazon business success story infographic
amazon business success story infographic

Amazon's Key Acquisitions

Year Company Industry
1998
Internet Movie Database (IMDb)
Comprehensive repository for movie information
1998
Planet All
Social networking site
1999
Alexa Internet
Web traffic analysis company
2004
Joyo
Online bookstore in China
2005
Mobipocket
Reading Software
2006
Shopbop
US online fashion apparel and accessories shop
2007
Digital Photography Review
Website on Digital photography
2008
Audible
Online audiobook and podcast service
2008
AbeBooks
e-Commerce global online marketplace
2008
Shelfari
Social cataloging website
2009
Lexcycle
Software Company
2009
Zappos
Online shoe and clothing retailer
2010
Woot
American Internet retailer
2011
Lovefilm
DVD rental service
2011
2011Double Helix Games
Video game developer
2012
Kiva systems
Robotics company
2012
Evi
Technology Company
2013
GoodReads
Social reading and book-review site
2014
Twitch
Video live-streaming service
2016
Curse
Gaming website
2017
Whole Foods
Grocery-store chain
2017
Souq.com
e-Commerce platform
2019
Future Coupons
Retail chain
2019
Bebo
Social networking company
2021
Wickr
Software Company
2022
One Medical
Primary healthcare clinics
2022
iRobot
Technology Company

Amazon Funding and Investment

history of Amazon key acquisitions

Amazon's Main Competitors

It is a known fact that Amazon competes head-to-head for market share with some of the largest corporations in the world. Here are some of its top competitors in different sectors:
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    Amazon's retail store rivals include Target, Walmart, Best Buy, and Costco.
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    The company competes with Netflix, Apple, and Google regarding subscription services.
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    Oracle, Microsoft, and IBM are its main competitors in the web services category.
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    When it comes to physical stores, the conglomerate's main rivals are Best Buy, Costco, Target, and Walmart Inc. 
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    The main competitors for AWS are Alibaba Group, Oracle, Microsoft, IBM, and Google.
Target
Walmart
best-buy
Costco
Netflix
Apple
Apple
Microsoft
Oracle
Target
Walmart
best-buy
Costco
Netflix
Apple
Apple
Microsoft
Oracle

What Made Amazon Successful?

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    The idea of searching and making purchases from the comfort of your home and the possibility of receiving items at your doorstep drove its success.
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    It understood the demand, brought in new features for the mobile application, and sold products of high quality for lower prices, which was not done by the eCommerce players of that time.
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    The company developed a seamless interface to manage its target audience's eCommerce needs with an accessible platform.
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    One of Amazon's success strategies is showing its audience the convenience of shopping from your iOS or Android smartphone or tablet.
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    Amazon's strategy of using sellers to manage its business aided the company in increasing its sales and ROI.
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    Apart from the above factor, Amazon conducted in-depth research to perfect characteristics such as pricing, listings of available products, shipping time frames, and the company's value-added services.
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    These value-added features are mostly Amazon Prime, where customers can watch unlimited movies and shows.
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    Another reason Amazon became successful so fast is that it was focused on being a customer-centric model where the client gets the best possible experience, making its business more efficient.
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    The company also believes in providing top-notch customer service, and combined with its customer support system, it boosts its sales.
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    Amazon's secrets to success in eCommerce are the availability of a wide range of products that are delivered fast.

A Peek into Amazon's Future Plan

  • Amazon fresh
    The company is also planning to grow its Amazon fresh (launched in 2020) chain line to other countries. This store uses Dash Carts, which have screens and a scanner connected to the amazon account.
  • Amazon Industrial Innovation Fund
    Amazon is creating a US$ 1 billion venture investment program called the Amazon Industrial Innovation Fund (AIIF) to support innovation in industries such as customer fulfillment, logistics, and the supply chain.
  • Amazon Prime Air Drone Delivery Service
    It started its 'Amazon Prime Air Drone Delivery Service' in 2022 in states like California and Texas and is now looking to expand that service.
  • electric vehicles
    The company is also making its delivery system more eco-friendly by implementing electric vehicles.
  • PillPack
    It also plans to expand in areas such as machine learning, home automation, robotics, and space exploration.
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    The pharmaceutical industry is also one of the other markets Amazon is trying to penetrate and has hence bought the rights to PillPack, a prescription delivery service.

Conclusion

Over the years, Amazon has implemented the right strategies at the right time to build a loyal customer base. It also succeeded because it intends to innovate and experiment with new products and services. The success story of Amazon speaks all about the eCommerce company’s ability to maintain a relationship with its customers and launch products that suit its target audience’s needs. The company is an excellent example for budding entrepreneurs. Not just the company, its founder Jeff Bezos is also a motivational figure as he experienced several failures in his life but was never demotivated by them.
Remember that numerous eCommerce tools are at your disposal; therefore, you can use them to build a full-fledged online marketplace, strengthen your brand’s market positions, and generate profit. Having successfully dominated the online retail market, it has now set its sight on expanding its services into other areas where it can create a new way of shopping. What do you think Amazon will be in another 10 years? We will have to wait and see.
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FAQs

The company has established itself by providing a user-friendly experience to its clients. Other major differentiators include improved search capabilities, suggestions based on prior purchases, one-click ordering at check-out, and numerous user reviews and ratings.
Amazon’s four growth strategy pillars include customer-centricity, innovation, corporate agility, and optimization. However, other Amazon success tactics are lower prices, fast delivery, value-added product, and excellent customer service.

Some tactics that amazon uses to enter and dominate new markets are:

  • Acting as a fuel for small businesses
  • Implementing AI and advanced technology
  • Expanding to emerging markets
  • Making critical acquisitions

The key factors of Amazon’s success are: 

  • Loyalty and pricing
  • Supporting decisions
  • Fast and convenient
  • Platform-specific
  • Content as a service
  • Omni-channel
  • Curation and specialty items
Jeff Bezos defines Amazon’s business model based on three value propositions: low price, fast delivery, and a wide selection of products. It allows buyers and sellers to interact and trade without hassle or difficulty. At the same time, it manages the production, packaging, shipping, and delivery of many products to customers at the lowest possible price.

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